The millennial generation – those who have reached adulthood in the year 2000s (18-34 years old), have twice the amount of money and half the debt as those aged 35-55.
According to a report by Experian, 45% of 18-34 year olds save a least a quarter of their disposable income each month, compared to 34% of 35-55 year olds.
Millennials who think that their parents positive influence on their financial attitude and habits save twice as much when compared to those who believe their parents had a negative influence.
Those who have benefitted from their parent’s financial experiences are more prepared when it comes to managing credit in particular.
Millennials whose parents had a negative effect on their money management are:
- twice as likely to have missed an agreed credit payment
- more likely to have gone into an unplanned overdraft
- twice as likely to have run out of money before payday
- twice as likely to have been refused credit
- twice as likely to have defaulted on a credit account
- 5 times more likely to have a count court judgement in their name.
Clive Lawson, managing director at Experian, said:
“As it stands, it appears that Millennials already surpass older generations when it comes to money management and this is good to see; however, there are still a few lessons to be learnt.
“Many are still making crucial errors in the way the manage credit and these mistakes, such as not even checking their own credit report can have far-reaching effects on their financial future.”
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